Earnings Quality; Bankruptcy Risk and Future Cash Flows

This research reviews the relationship between earnings quality and future operating cash flows considering financial conditions of sampled companies. For measuring earnings quality، abnormal accruals are used as an explanatory variable in regression models. Financial conditions of companies are used as a moderate variable using Charitou bankruptcy probability model and Ant colony system is used for separating bankrupt and non-bankrupt companies. Operating cash flows is used as a dependent variable in regression models. Research statistical sample contains 72 listed companies in TSE for the period 1380-1388. Results from testing research statistical hypotheses indicate there is a significant relationship between earnings quality and future operating cash flows. On the other hand، there is a significant difference between Charitou bankruptcy probability and Ant colony system models in explaining the relationship between earnings quality and operating cash flows